Market Tumble Amid India-Pakistan Tensions
The Pakistan Stock Exchange experienced a significant drop of 6,500 points due to rising military tensions between India and Pakistan following a terror attack. Investors panicked, leading to the market's suspension. Analysts predict potential recovery as they cautiously watch for global mediation.
- Country:
- Pakistan
The Pakistan Stock Exchange (PSX) witnessed a dramatic decline on Wednesday, shedding 6,500 points amid escalating tensions between India and Pakistan. This downturn followed the Pahalgam terror attack, sending investors into panic mode and triggering a 5.78% decline in the benchmark KSE-100 index.
The market's massive dip led to an immediate suspension of trading, marking the second-largest intraday tumble, only surpassed by the recent U.S. market drop influenced by trade tariff announcements by President Donald Trump. Despite signs of recovery mid-morning, the market continued to fluctuate as fears of military conflict loomed.
Financial analysts attribute the market's performance to regional hostilities, with some expressing cautious hope for a swift resolution through international mediation. India's launch of 'Operation Sindoor' in response to the Pahalgam attack further fueled uncertainties in the financial landscape.
(With inputs from agencies.)
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